Knorr-Bremse (KBX) Q1 2025 earnings summary

Executive summary

• Q1 2025 began strongly, with Rail Vehicle Systems (RVS) showing robust growth and Commercial Vehicle Systems (CVS) remaining resilient despite market headwinds, supported by a decentralized structure and strong local production.

• Order intake rose 12.5% year-over-year to €2,376 million, driven by strong rail demand and the KB Signaling acquisition, with the order book reaching a record €7,443 million, up 10.6% year-over-year.

• Revenues were stable year-over-year at nearly €2 billion, with growth in RVS offsetting declines in CVS.

• Solid customer relations, robust financial position, and ongoing execution of the BOOST program underpin performance, with successful integration of KB Signaling.

• Guidance for 2025 is confirmed, with confidence in reaching medium-term 2026 targets.

Financial highlights

• Q1/25 revenues at €1.96 billion, down 0.8% year-over-year, with operating EBIT margin stable at 12.1%.

• Free cash flow improved to €15 million from €-95 million, supported by better working capital management and a one-time tax reimbursement of over €30 million.

• Net income attributable to shareholders at €134.7 million; EPS at €0.84 (Q1/24: €0.95).

• CapEx was €53 million (2.7% of revenues), down from €72 million (3.6%) last year.

• ROCE annualized at 19.7% (Q1/24: 19.5%).

Outlook and guidance

• Full-year 2025 guidance confirmed: revenues €8.1–8.4 billion, operating EBIT margin 12.5–13.5%, free cash flow €700–800 million.

• RVS expected to see solid revenue and margin increase; CVS revenue nearly flat with slight margin improvement.

• Guidance assumes stable FX, macro, and geopolitical conditions; restructuring costs of approximately €75 million anticipated.

• RVS outlook remains strong; CVS expectations are more conservative due to North America.

• Guidance based on February 2024 FX rates; does not include major tariff or geopolitical impacts.